Ecuador: Economic Outlook

September 13, 2016
focus-economics.com reported Ecuador’s dollarized economy is facing myriad pressing issues that stem from subdued oil prices, a strengthened dollar and the aftermath of April’s earthquake. The country has undertaken fiscal and external adjustments that signal its commitment to maintain the official dollarization, which is widely regarded as conducive to macroeconomic stability. Nonetheless, the strengthening dollar has weighed on Ecuador’s exporting sector, with many of its major regional trading partners depreciating their currencies. In turn, reduced revenues have hit the country’s finances, exacerbated by depressed income from oil-related exports. In an effort to rein in the country’s fiscal deficit, the government slashed capital expenditure and imposed several tax increases earlier this year. These, however, have put a strain on wages and public spending, prompting domestic demand to deteriorate and causing economic growth to plummet to a record low in Q1. Against this backdrop, Fitch Ratings cut Ecuador’s rating outlook to negative in late August. Read Full Article with statistics and Data.

MOVING TO ECUADOR – READ THIS BOOK 100 POINTS TO CONSIDER BEFORE MOVING OR RETIRING IN ECUADOR